Gold prices edged higher today, Thursday, on dollar weakness and economic concerns as investors seek more clarity on the Federal Reserve’s (US central bank) monetary policy stance.
And by 01:31 GMT, gold in instant transactions rose 0.2% to $2,032.58 an ounce. US gold futures also rose 0.2% to $2041.80.
The dollar index fell 0.1%, according to Reuters, making the yellow metal, priced in US currency, available to buyers abroad.
Gold prices initially rose yesterday, Wednesday, after the release of US inflation data, and then turned down as a result of profit taking.
US annual consumer price growth slowed to less than 5% for the first time in two years in April, which could prompt the US central bank to temporarily halt interest rate hikes next month.
Low interest rates increase the attractiveness of unprofitable gold.
Meanwhile, US President Joe Biden on Wednesday stepped up pressure on Republican lawmakers to quickly raise the country’s $31.4 trillion debt ceiling, or else the world’s largest economy risks falling into recession.
Matt Simpson, senior market analyst at City Index, said the debt ceiling crisis appeared to support gold prices.
In other precious metals, spot silver fell 0.2% to $25.37 an ounce, platinum rose 0.2% to $1115.92 and palladium shed 0.2% to $1604.23 .
